Feds probe deal for city revival

SCHENECTADY - Federal prosecutors are looking into aspects of the city's downtown redevelopment efforts as part of an ongoing federal criminal investigation, sources said Thursday.

The U.S. Attorney's Office in Albany has subpoenaed amendments to a contract between the city Industrial Development Agency and Hunter Interests Inc., the consulting firm that prepared a master plan for Schenectady downtown redevelopment in 1999, The Daily Gazette learned.

...

So far the same federal investigation has resulted in a guilty plea by former Rotterdam town Supervisor James A. Constantino to a charge of extorting $8,000 from a local excavation company in 1996. He is expected to be sentenced next month to 1½ to 3 years in federal prison.

The investigation became public when two subpoenas, signed by Assistant U.S. Attorney Steven Tyrrell, were served on Rotterdam town officials in April 2001. Those subpoenas demanded tax roll records and records of business dealings between the town and several local construction companies dating back to 1996.

The investigation then widened to the city of Schenectady when another subpoena was served on the city clerk's Office in November, demanding a wide range of City Council records - also from 1996 to present.

It was learned a few days later that the county Legislature was subpoenaed for legal and voting records, and the financial disclosure records of then-county Legislator John DeGeorgio were simultaneously subpoenaed.

Submitted by: Werner Hetzner 

Source: Gazette Newspapers 7/12/02